Education Opportunities

An Expert's View about Education in Indonesia

Last updated: 21 Jul 2011

The Education sector is on the Indonesian Government’s Negative Investment List. This means there are very limited opportunities for foreign entities to invest in this sector. However, the Indonesian Government through the Ministry of National Education permits foreign universities to take part in twinning and dual degree programmes in Indonesia.

Sector briefing Education Opportunities in Indonesia Why Indonesia? Indonesia?s strong economy performance, coupled with steady young population growth, makes Indonesia too big a market to ignore. A country report by Eurocham predicted that Indonesia will become the world?s 5th-largest economy by 2050, behind Brazil, Russia, China and India. The Education sector is on the Indonesian Government?s Negative Investment List. This means there are very limited opportunities for foreign entities to invest in this sector. However, the Indonesian Government through ?In January 2010, the British the Ministry of National Education permits Council launched a major foreign universities to take part in twinning and campaign to increase ties dual degree programmes in Indonesia. between UK and Indonesian institutions, including increasing Find general information on the Indonesia market conditions on UKTI?s website. The bilateral engagement in higher Doing Business Guide for Indonesia gives an education and improving quality, overview of Indonesia?s economy, business as well as maintaining the UK?s culture, potential opportunities and an position as a leader in introduction to other relevant issue international education.? UK Trade & Investment Sector briefing: Education opportunities in Indonesia opportunities exist for providers of vocational Overview education. The current education system in Indonesia is Corporate & Offshore programme adapted from a system introduced by the former Dutch colonial administration, which is There is growing demand for programmes designed around 12 years of education in tailored to business requirements. primary school, middle school and high school. The Ministry of National Education Cultural Exchanges & Study Abroad (Kementerian Pendidikan Nasional) is Programme responsible for the education sector in Indonesia. The UK remains an interesting destination for Indonesian students and the growing middle Education is among a few sectors that were class have created an opportunity for UK included in the 2010 revision of the Indonesian institutions. Government?s Negative Investment List. Foreign investors are now permitted to have a Tailored Training Programme maximum 49% stake in a non-formal education entity. The higher education sector is Opportunities exist across many areas of regulated by Law Number 20/2003 concerning study, including finance, banking, oil & gas, the National Education System. The law states manufacturing and agriculture. that a foreign education provider must partner with a local education entity and employ local TVET teaching staff. In the development of its education system, Opportunities including its vocational education system, Indonesia always had considerable support With a solid core of wealthy Indonesians, a either from international donors or through the growing middle class with more money to World Bank and Asian Development Bank. spend on education and current reforms to lift Currently several donors are supporting educational standards, there are new Indonesia with technical and financial aid in opportunities for UK institutions to establish developing TVET. themselves in the market. The following opportunities are available: English as Second Language Joint Research Programme and Indonesia offers a promising market for English Institutional Linkages as a second language. While English language is commonly taught in most high schools, most Expansion of institutional partnerships, Indonesian students still attend an intensive particularly for research in areas of global English language preparation class before significance and shared concern, offer beginning their undergraduate studies. opportunities for UK Institutions to work with their Indonesian counterparts in improving Competitive Environment educational performance and educating home- country students to an international standard. Australia continues to be a market leader in education followed by USA and UK. Teacher development training programme In January 2010, the British Council launched a More than 54% of the total 2,603,650 teachers major educational campaign to increase ties in Indonesia are under-qualified and still to between UK and Indonesian institutions, obtain required qualification of Undergraduate including increasing bilateral engagement in Degree. higher education, improving quality, as well as maintaining the UK?s position as a leader in Vocational Education Programme international education. In March 2010, the British Council invited an Indonesian delegation Differentiation of occupation in the developing (rectors from top-ranked Indonesian economies requires secondary school universities) to visit the UK to attend the East graduates with varied skills, and good Asia Regional Mission and the Going Global UK Trade & Investment Sector briefing: Education opportunities in Indonesia conference in London, as an opportunity to University of Newcastle interact with senior leaders of UK universities Bogor Agriculture Institute and fellow East Asian participants. In November 2010, the British Council held an University of Newcastle annual education exhibition in Jakarta. Institute Technology Sepuluh Nopember UK and Indonesian universities with collaboration agreements include: University of Newcastle University of Indonesia Air Service Training (Perth) Bandung State Polytechnic University of Newcastle Institute Technology Sepuluh Nopember De Montfort University Pelita Harapan University University of Portsmouth Petra Christian University Dundee University Brawijaya University Leeds Metropolitan University If you have any questions on the opportunities Bandung School of Tourism above, please contact Peggy Gaspersz at Business Leeds University opportunities aimed specifically at UK Muhammadiyah Malang University companies are added daily to UKTI?s website. These leads are sourced by our staff overseas Goldsmith, University of London in British Embassies, High Commissions and Institute Technology Bandung Consulates, across all sectors and in over 100 markets. Northumbria University Bina Nusantara University You can be alerted to business opportunities on a regular basis by registering on the UKTI Oxford Centre for Islamic Studies website. Find out more on UKTI?s business Gadjah Mada University opportunities service on the UKTI website Sheffield Hallam University Bina Nusantara University Sheffield Hallam University Trisakti University University of Essex, University of Bedfordshire, and University of Gloucestershire Indonesia Islamic University University of Glasgow University of Indonesia UK Trade & Investment Sector briefing: Education opportunities in Indonesia Major events and activities UKTI contacts Find full details of all events in this Peggy Gaspersz country and sector on the UKTI website. Senior Trade & Investment Manager New export events are added daily to the site British Embassy Jakarta and you can register to be alerted to them on a Tel: +62 21 2356 5200 daily, weekly or monthly basis Email: UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SMEs) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Education opportunities in Indonesia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in Indonesian are advised to you to meet contacts and promote your undertake as much market research and company in Indonesia planning as possible in the UK. UKTI?s team in Indonesia, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in Indonesia to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Education opportunities in Indonesia
Posted: 21 July 2011, last updated 21 July 2011

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